Anonymous
10/15/2017 21:09
Subject: $50k on a Pied a Terre?
Anonymous wrote:You have a car loan and you're thinking about buying a second house?
That’s kind of an idiotic statement. I’m in finance & have multiple properties & investment properties. If I can’t get a better return on my money than the low interest rate on a car loan, then I’m a pretty lousy investor. Why wouldn’t I invest the amount instead of parking it in a car? Say I’m conservatively getting 5% on the money but only paying 2% interest on the car loan? That’s an easy 3%
Anonymous
10/15/2017 18:56
Subject: $50k on a Pied a Terre?
You have a car loan and you're thinking about buying a second house?
Anonymous
10/14/2017 15:58
Subject: $50k on a Pied a Terre?
Anonymous wrote:Anonymous wrote:Don't you need more than 20% down for a second house?
yep, and interest rates are usually higher too.
No you don't. I have a ton of money invesred in real estate. A second home, plus 3 rentals. I've never had to put doen more than 20.
Regardless, the OP either makes a smart investment or doesnt.
Anonymous
10/14/2017 15:21
Subject: $50k on a Pied a Terre?
Anonymous wrote:Don't you need more than 20% down for a second house?
yep, and interest rates are usually higher too.
Anonymous
10/14/2017 12:39
Subject: Re:$50k on a Pied a Terre?
Anonymous wrote:Anonymous wrote:
One house, one spouse, OP.
Does that rule scale linearly?
You can have more than house but cant have more than spouse legally in this country.
Anonymous
10/13/2017 21:09
Subject: Re:$50k on a Pied a Terre?
Anonymous wrote:Anonymous wrote:OP here. Thank you for these insights. The rate on the car loan is 3% and 3.5% on the student loans. We are 32 and 30 with one child, age 5. We have $500k in retirement accounts combined and max out matches and contribution the past 2 years. Combined 529 is $100k (from us and both sets of grandparents). We gave up city life for the suburbs and I want a piece back. Maybe it does not make financial sense.
Wait, what are you even imagining here, that dad lives a single life in the city all week while mom takes the kid to/from school and commutes? Or maybe the kid enrolls in a DC school but lives in Burke on the weekends? How would this plan even play out, with 3 people in a studio or with one parent completely checking out of parenting all work week?
I want to know too!
Anonymous
10/13/2017 15:42
Subject: $50k on a Pied a Terre?
Don't you need more than 20% down for a second house?
Anonymous
10/13/2017 14:58
Subject: Re:$50k on a Pied a Terre?
Anonymous wrote:
One house, one spouse, OP.
Does that rule scale linearly?
Anonymous
10/13/2017 14:28
Subject: Re:$50k on a Pied a Terre?
Anonymous wrote:OP here, yes 20% of $250k studio downtown. Question, you consider both the car loan and student debt “consumer debt?”
Yes, of course. Because they are. What you do think consumer debt is OP? SMDH.
One house, one spouse, OP.
Anonymous
10/13/2017 14:14
Subject: Re:$50k on a Pied a Terre?
Anonymous wrote:Anonymous wrote:OP here. Thank you for these insights. The rate on the car loan is 3% and 3.5% on the student loans. We are 32 and 30 with one child, age 5. We have $500k in retirement accounts combined and max out matches and contribution the past 2 years. Combined 529 is $100k (from us and both sets of grandparents). We gave up city life for the suburbs and I want a piece back. Maybe it does not make financial sense.
Wait, what are you even imagining here, that dad lives a single life in the city all week while mom takes the kid to/from school and commutes? Or maybe the kid enrolls in a DC school but lives in Burke on the weekends? How would this plan even play out, with 3 people in a studio or with one parent completely checking out of parenting all work week?
It almost feels like you want to be able to tell people you have a "pied a terre" in "the city."
Anonymous
10/13/2017 12:56
Subject: Re:$50k on a Pied a Terre?
Anonymous wrote:OP here. Thank you for these insights. The rate on the car loan is 3% and 3.5% on the student loans. We are 32 and 30 with one child, age 5. We have $500k in retirement accounts combined and max out matches and contribution the past 2 years. Combined 529 is $100k (from us and both sets of grandparents). We gave up city life for the suburbs and I want a piece back. Maybe it does not make financial sense.
Wait, what are you even imagining here, that dad lives a single life in the city all week while mom takes the kid to/from school and commutes? Or maybe the kid enrolls in a DC school but lives in Burke on the weekends? How would this plan even play out, with 3 people in a studio or with one parent completely checking out of parenting all work week?
Anonymous
10/13/2017 12:53
Subject: $50k on a Pied a Terre?
Anonymous wrote:Honestly I think it is a horrible idea. My rental properties are my rental properties. I don't try to live in them. Do you really want to be cleaning up and changing sheets every weekend so that you can use the place during the week? And ick factor - I don't want to lounge on a couch that strange butts are sitting on every weekend. I don't want to sleep all week in bed that a different stranger uses every week. And this is a STUDIO - it's not even like you can sequester them in a spare bedroom.
If you really want a pied a terre, then you probably need to live closer in to the city overall. I would use the 50k to buy a place that is better located for your every day life.
+1
OP if you want to use the $50k to get into the rental game, that's one thing. But what you're planning is incredibly complicated and not likely to bring in much money. Pay off your car or move closer in, you're trying to do too much with this money and make your life more complicated for very little payoff.
Anonymous
10/13/2017 12:35
Subject: Re:$50k on a Pied a Terre?
OP here. Thank you for these insights. The rate on the car loan is 3% and 3.5% on the student loans. We are 32 and 30 with one child, age 5. We have $500k in retirement accounts combined and max out matches and contribution the past 2 years. Combined 529 is $100k (from us and both sets of grandparents). We gave up city life for the suburbs and I want a piece back. Maybe it does not make financial sense.
Anonymous
10/13/2017 10:39
Subject: $50k on a Pied a Terre?
Terrible idea. You won't make money on this rental.
Anonymous
10/13/2017 10:09
Subject: Re:$50k on a Pied a Terre?
Pay off debt first before taking on new debt and the headache of renting which I'm sure you hope will cover your costs. Do you really want to be cleaning up someone's mess every time you want to use it. That will grow old fast.